Wells Fargo to buy Barrington Associates

Acquisition helps lender expand in middle-market investment banking

By

AlistairBarr

SAN FRANCISCO (MarketWatch) - Wells Fargo & Co. said on Monday that it agreed to acquire Barrington Associates as the lender expands the investment-banking services it provides to medium-sized and small businesses.

Wells Fargo
WFC, -0.75%
didn't say how much it paid for Barrington, a private investment bank based in Los Angeles that specializes in advising businesses with between $25 million and $1 billion in annual revenue. The deal needs regulatory clearance and is expected to close in the fourth quarter, the bank said.

Barrington was formed in 1982 and has advised on deals in industries including consumer products, business services and healthcare. Its clients are usually entrepreneur-owned companies and private equity firms.

Barrington will keep its name and become part of Wells Fargo Securities. The firm will also be Wells Fargo's principal unit handling middle market mergers and acquisitions, the bank said.

"Merger and acquisition advisory services is a key product area for our middle market customers and private equity clients," Tim Sloan, executive vice president and head of Wells Fargo's Specialized Financial Services Group, said in a statement. "The addition of Barrington Associates will significantly expand and build on our existing investment banking capabilities."

Wells Fargo shares climbed 7 cents to $35.21 on Monday, leaving them up more than 10% so far this year.

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